If you accept his offer to buy 598 shares for £7.71 each then you have formed a legal contract to execute the purchase - you would hope that people wouldn’t decide to pull out of that willy nilly.

I would hope that they don’t pull out willy nilly too but I wouldn’t be surprised if it happened often. I also doubt it would hold any legal weight or be worthwhile to pursue but I’m sure you understand the point that I was trying to make

fashburner:

Unlikely that someone with exceptional reasons to sell would like that plastered over a forum for all to see - and nobody has the right to ask or should expect that.

Just to be clear I never stated that the reason should be posted on the forum. When I referred to ‘everyone’ it was the parties involved that I listed earlier in the comment. i.e Monzo, Crowcube and those who approve it. It is of no concern to anyone else why the shares are being sold.

neovo:

Can imagine there’s a lot of requests, mustn’t this take up time?!

This was the point that I was making and that the process could be made simpler, leading on to me thinking the same as what @Feathers said here.

This was the point that I was making and that the process could be made simpler, leading on to me thinking the same as what @Feathers said here.

I think the main reason that a Board Resolution is needed is because we are talking about actual ownership of the company, and with this certain Company Accounts are affected by issuing shares. Especially within a Private Company, shares are highly illiquid - furthermore should a ‘new’ shareholder be brought in (i.e. do not hold shares at all) they will need to be entered into the Company’s Registers and as far as I am aware the Company Directors themselves actually need to sign the transfer form - hence the need for a Board Meeting.

Agreed needing a Board Meeting and Board Resolution is a lengthy process to transfer shares but it is this way from a legal and procedural standpoint - hence the “exceptional circumstances” requirement.

From looking over the advice again, yes, it does seem that you need to know who the transferee is before you can seek permission. I’m sorry for the confusion.

In that case, I’ll just amend my advice to say that you should be fully aware of the conditions and process surrounding selling shares before you solicit interest. There’s no need for anyone to go into personal details on the forum, but you should know that there’s a process to go through and the conditions are reasonably strict.

You’d imagine so, but I expect that the requests are checked and the board will be asked for a blanket approval unless a request is above a given number. What that number might be is anyone’s guess. 1,000? 5,000? 25,000 shares?

Admittedly that’s just speculation, but then so is investing in start-ups! (Sorry, not sorry)

Hi guys, let’s say I want to buy more Monzo shares from people who they own now but let’s assume they want to sell some of their shares, is that possible? Would Crowdcube change the deed from them to my name?

You are right, I just check previous treads and saw that the shares can be bought in blocks, I’m not worried about that, if it’s just few hundreds a block it’s fine, just want to know if I can buy and how many I’m allowed to own.

@alexs I’ve seen many many many posts like this . Do we have a main post on shares and how we can transfer the ownership of needed? It would be good to create post with all of the FAQs regarding investment to save time for others in the future.

My understanding is that Monzo has taken a different approach now, anyone can correct me if I’m wrong but you are allowed to sell your shares but what they say now is that if you’re selling due to special circumstances then you have to sell all your shares at once (all funding blocks).

Before the funding rounding there were a couple of shareholders that I offered to buy part of their holding for £6 per shares but they were trying to be clever about it and thinking they will wait untill the share price goes up and sell some of their shares for a good price and hold on to some shares, well you cannot do that anymore

For those that hold 3k+ shares good luck in finding someone who is willing to pay £30k+

Would be good to get that clarified. I thought you could still split your holding by funding round.

Would also be good to get some examples of “exceptional cirumstances”. Given that the lack of liquidity is the Achilles heel of all equity crowdfunding, and Crowdcube have often talked of opening a secondary market, I’d find it very surprising if they were to block a genuine trade request.

As it’s been buried somewhat in the thread, I thought I would re-link to this post clarifying under which conditions a transfer of shares is possible.
As far as I am aware all of this information continues to be accurate:
– You can only transfer your shares to a spouse, civil partner, child, grandchild; the trustees of your family trust; or a company in which you or your trustees hold all of the shares
– If this is not the case, as @Ordog suggests above, you have to seek approval from Monzo…

So all you need to do now is clarify how much you can own. Also bare in mind it is looking like it takes a few months before the board votes on the approval of the sale and you need to state that you’ll buy them in advance of this

I traded shares a year and a half ago and it was as simple as emailing Monzo with our proposed trade, then an employee who was not on the board replied saying yeah that’s fine, go ahead, and then Crowdcube processed the trade within days.

Is this board meeting requirement new or is it fake news?

I don’t see why Monzo would want to make it harder to sell shares. As long as it is just individuals trading 0.001% of the company and not BBVA or HSBC building a majority stake then what does it really matter to Monzo or anyone else whose name is on them?

A Crowdcube Nominee shall not be entitled to transfer or dispose of any interest in the Crowdcube Shares except pursuant to a Permitted Transfer, with the consent of the Board or where required to do so pursuant to the Articles or pursuant to acceptance of an offer above a pre-set consideration and provided that in each case a Crowdcube Nominee remains the holder of the legal title of all of the Crowdcube Shares. If such a transfer is made by a Crowdcube Nominee, the transferee shall be treated as a Crowdcube Nominee for all purposes under the Articles.

(iii) A Crowdcube Investor shall not be entitled to transfer or dispose of any interest in the Crowdcube Shares held by them except with the consent of the Board, pursuant to the Articles or where otherwise required to do so under the Articles or pursuant to acceptance of an offer above a pre-set consideration value.